As with the previous versions, the latest Windows Phone 7 emulator released today has already been unlocked, giving access to a lot more of the operating system than the standard emulator. Not much has changed, as far as we can tell: Still no HTTPS, Marketplace, or Services integration. We'll keep digging, but if you want to get your emulator unlocked, follow these steps:

1) Download the file from this XDA-Developers thread.

2) Run with a shortcut to "C:\Program Files\Microsoft XDE\1.0\XDE.exe" "C:\Users\YOU\Desktop\WM70C1.en-US.unlocked.bin" /VMID {E575DA31-FC47-4766-853F-018D823B9EE6}, or by copying it to "C:\Program Files\Microsoft SDKs\Windows Phone\v7.0\Emulation\Images" and overwriting the old file.

That's it!

[Via: XDA-Developers]